6.3 Million Greeks Threatened by Poverty

A shocking report of the Parliamentary Budget Office regarding the economic situation of Greek households revealed that approximately 6.3 million Greeks are threatened by poverty.

Approximately 2.5 million Greeks are living below the poverty line, while 3.8 million are in direct danger of crossing the poverty line, the report said.

The report entitled “GMI Policies in the European Union and Greece” also notes that protection policies are effective, while the implementation of the Guaranteed Minimum Income in Greece is delayed.

According to the report, during the second quarter of 2014, Greece’s unemployment rate was 26.6%, compared to 27.8% in the previous quarter and has also affected men at working age. The number of unemployed people rose to 1,280,101 and unemployment among young people aged 15-24 reached 52%. Meanwhile, many households have no employed members and are left without resources, while a dramatic reduction in wages has also been recorded.

Based on the survey of income and living conditions of Greek households, 2.5 million people are living below the relative poverty line, based on the average household income. In addition, 3.8 million people are at risk of living below the poverty line due to material deprivation and unemployment. According to Eurostat, Greece was ranked last in the list of EU countries with poverty risk. Greece is also among the group of countries with the highest poverty rates (23.1%), ahead of Spain, Romania and Bulgaria, and also ranks fourth in the poverty gap index after Spain, Romania and Bulgaria.

Finally, the report also notes that the social protection programs have been significantly delayed in Greece, while the country is facing acute situations of extreme poverty and social exclusion.

The demand for social welfare from citizens is strong and the state has only been able to supply it sporadically since it has been facing administrative problems. Therefore, the social safety net is characterized by inefficiency, while there is no replenishment of income loss from the economic depression in the near future.